Sanders steps down as Baltimore's sales slow

Baltimore Technologies named Bijan Khezri as its chief executive yesterday and parted company with Paul Sanders, its chief financial officer and acting chief executive, as it issued worse-than-expected third-quarter sales figures. Shares in the Dublin-based internet security software firm rose 2p to 16p.

In addition, Mr Khezri, who has been involved with the business for the past four years, said Baltimore was in advanced discussions with three to five parties over the sale of Content Technologies. The unit, which produces software that sweeps emails for viruses, was bought a year ago in an all-share deal worth around £525m, although analysts have valued it at more like £25m to £50m recently.

Baltimore also said yesterday revenues in the third quarter were £15m, well beneath analysts' estimates of around £16m to £17m and less than the £16.5m recorded in the second quarter of the year. Cash, at 30 September, stood at £32.4m, down from £54m three months ago.

Mr Khezri said, taking into account potential disposal proceeds, existing cash and recent cost-cutting measures, he was "very confident" Baltimore would not need additional funding. The business is expected to break even toward the end of the second quarter of 2002.

While further redundancies could not be ruled out, he did not envisage another major programme of job cuts.

Mr Khezri, who will assume responsibility for the company's finances until a new finance director has been found, explained Mr Sanders' departure by saying: "His job has totally changed. He wanted to be part of a growth company and it's become a major restructuring case."